Australian billionaire Ivan Glasenberg is investing more in thermal coal than his three closest competitors combined. Glasenberg is the chief executive officer of Glencore Xtrata PLC. According to a report by Bloomberg, the former coal trader is betting on prices rebounding from a three-year drop. Investors, however, warn that the fuel's outlook is deteriorating.
Glencore Xtrata is spending USD4.75 billion on projects inherited in the takeover of Xtrata PLC. This is expected to boost the company's output by 16% through 2016. Glasenberg owns an 8% stake in Glencore Xtrata, the report said.
Meanwhile, rivals BHP Billiton Ltd., Rio Tinto Group and Anglo American PLC have postponed new investments, sold mines or stopped others, Bloomberg said.
Last month, Glencore Xtrata paid Rio about USD500 million for 25% of Australia's third-biggest thermal-coal mine, the report stated. Glecore Xtrata is spending USD2.6 billion expanding two Australian coal operations. It also spent USD550 million this year on a coal port in Colombia and USD1.1 billion on a South African mine, said Bloomberg.
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